The Hound Gentlemen’s Clothiers finds buyer on eve of...

1of8Mike Blunden (right), longtime co-owner of the Hound Gentlemen’s Clothiers on Sutter Street in San Francisco, helps customer Andre Baldanza try on a sport coat. Patrick James is negotiating to take over the shop.Photo: Photos by Paul Chinn / The Chronicle

2of8The Hound, which offers a variety of clothing and personal service, has struggled as styles have changed and more people shop online.Photo: Paul Chinn / The Chronicle

3of8The Hound co-owner Walt Schorno helps David Baumgarten (right) select a jacket for his son at the Sutter Street store.Photo: Paul Chinn / The Chronicle

4of8Hound Gentlemen's Clothier store is located in the historic Hallidie Building on Sutter Street in San Francisco, Calif. on Wednesday, Feb. 20, 2019. The longtime owners are retiring at the end of the month and may close the shop if they are unable to find a buyer.Photo: Paul Chinn / The Chronicle

6of8It is one of the last local stores of its kind in San Francisco.Photo: Paul Chinn / The Chronicle

7of8Walt Schorno, 81 and Mike Blunden, 75, plan to continue to work two days a week at the shop under terms of a deal being finalized with a new owner.Photo: Paul Chinn / The Chronicle

8of8The owners thought their clothing store would have to close in February after 46 years in business until a buyer emerged.Photo: Paul Chinn / The Chronicle

One of San Francisco’s last traditional men’s clothing stores, a Financial District institution that teetered on the brink of closing after half a century, may stay open under new owners.

The Hound Gentlemen’s Clothiers, in the 100-year-old Hallidie Building at 140 Sutter St., had struggled amid competition from online retailers and changing style preferences. With its lease expiring in April, and its owners looking toward retirement, it is negotiating to transfer ownership to Patrick James Inc., a Fresno manufacturer and seller of men’s clothing and accessories. Patrick James would take over the lease and operate the store under the Hound name.

Under the terms of the deal, the Hound’s current owners, Walt Schorno, 81 and Mike Blunden, 75, would continue to work two days a week at the shop.

“My fondest memories over the years are of my customers,” Schorno said in between helping customers find dress shirts and jackets. “We’ve gotten to know them well, sometimes outfitting different generations of the same family.”

Schorno thought the Hound would have to close this month after 46 years in business. With his 82nd birthday approaching, Schorno said, he planned to dial back some of his work responsibilities. He said he and Blunden did not want to sign another long-term lease, but they hoped the space could remain a men’s clothing store.

If the deal goes through, he said, he can continue doing what he loves. And if certain sales goals are met, both he and Blunden would have a small share in profits.

When Schorno started the Hound in 1972 in a 400-square-foot space in the Flatiron Building, there were about 200 menswear shops in the city. A few — like Brooks Brothers and Cable Car Clothiers — still exist.

But online competition has stiffened in recent years, and companies like Knot Standard, a New York luxury menswear company, and Amsterdam’s Suit Supply, both of which also have stores in downtown San Francisco, have cut into the business of stores like the Hound that rely on knowledgeable salespeople and in-house tailoring. The Hound does not even have a website.

Workplace attire has also changed, said Brian Kilcourse, managing partner at Retail Systems Research in Miami. Tech workers wearing T-shirts and jeans “are reasons why lots of high-end fashion businesses have gone out of business,” he said.

“I do miss people coming into the store with a necktie and suit,” Schorno said.

Patrick Mon Pere Jr., whose father started the Patrick James company in 1962, said that terms are being negotiated with the building owners, and an agreement should be finalized in two weeks. The Hallidie Building has traditionally been home to men’s retail on the ground floor, though the clothing warehouses on the upper floors have given way to offices, said Ed Conner, co-owner of the building.

“We have an interest in preserving the Hound name and the legacy it has,” Mon Pere said. Patrick James’ online and catalog business accounts for half of its sales, and offerings from the Hound will be added to Patrick James catalogs.

Some Hound customers prefer the store to the internet. The attention to detail and the variety of styles have kept retired teacher Tom Bostock, 68, coming back.

“Shopping online, you can’t feel the texture and weight of the fabric,” he said.

Schorno said the Hound’s annual revenue has averaged $2.5 million over the past five years. The price of a suit runs about $1,000.

“We’ve managed, even though we’ve stayed fairly flat, because of our customers,” he said.

The Hound plans to stay open until at least March 8, then reopen in April or May under new ownership. Schorno said he’ll keep the store open with limited hours during the transition. The shop is selling merchandise for 50 percent off, and is also offering five ties for free.

Shwanika Narayan is a business reporter at The San Francisco Chronicle where she covers retail and logistics. She was previously a reporter with the Los Angeles Business Journal where she wrote about manufacturing, retail and trade. Prior to that, she worked as a freelance video producer at AJ+ covering general news, her freelance work also includes writing for NBC News, Quartz and Hyphen magazine on Asian American identity. Shwanika has a master’s degree in journalism from Columbia Journalism School and a bachelor’s degree in political science from UCLA.